An unnamed European family office represented by Canadian Urban Limited has purchased Laurence, a 230-unit mixed-use purpose-built rental apartment in Old Montreal, from developer Mondev for approximately $135 million.

The eight-storey, 180,887-square-foot building is located on close to an acre of land and occupies almost an entire block at 240 Notre-Dame St. W. It was completed in 2024.

Laurence offers studios and one-, two- and three-bedroom units that are 98 per cent leased. Its amenities include a rooftop pool and lounge, an interior courtyard and a fitness centre.

The location provides views of Notre-Dame Basilica, the Old Port’s ferris wheel and Biosphere as well as convenient access to the nearby Place d’Armes Metro station, bicycle paths along the Lachine Canal and Route 136.

“It fits our profile of acquiring institutional quality urban assets focused on transit-oriented locations and emphasizing ESG (environmental, social and governance) and sustainability,” Canadian Urban senior vice-president of investments Sean Demsky told RENX.

Retail space at Laurence

In addition to the residences, Laurence has about 21,000 square feet of unleased retail space at ground level.

“Old Montreal is comprised of very fragmented and very small and older retail shops,” said Demsky. “This (space) represents a great opportunity to change that and to have impact on the area as a regional draw. 

“It could be used for a wellness centre, a grocery store or all sorts of entertainment uses that could bring in people to the Old Montreal area and create a very special place. 

“We're not looking for a short-term tenant, we're looking for a long-term anchor that will create change and support the residents of our building along with the residents and businesses in the area.”  

Foreign investors are interested in Montreal

Not only did Canadian Urban act as the investment manager for the European family office in acquiring Laurence in an off-market deal, but it also represented it for the acquisition of the Mondev-developed Mille Deux Cents Mackay — an 11-storey, 125-unit purpose-built rental apartment at 1200 Mackay St. in Montreal’s Golden Square Mile neighbourhood — last June.

CBRE represented Mondev in both deals and Scott Speirs, vice-chairman and practice lead for the company’s Montreal national investment team, told RENX that the purchases are part of a growing trend of foreign buyers making acquisitions in the city.

“With the economic and geopolitical volatility around the world, more capital is looking for a safe haven,” said Speirs. “Canada really stacks up very high on that list in terms of countries that are stable and reliable with good governance and solid demographics and economic performance.”

German investment bank and asset manager DekaBank acquired the 11-year-old, 26-storey, 495,000-square-foot Tour Deloitte office tower at 1115 Saint-Antoine St. in downtown Montreal from Cadillac Fairview for an undisclosed price in January. 

Speirs said another major Montreal transaction involving a foreign purchaser will be announced in a few weeks.

Laurence deal was relationship-based

“We’ve established a great relationship not only with CBRE, but with the developer, Mondev,” said Demsky about the Laurence and Mille Deux Cents Mackay deals. “It was based upon trust, reliability and commitment from both Canadian Urban and our client.”

Edmonton-headquartered Canadian Urban has worked with the client for 15 years and Demsky said it also owns other assets in Montreal as well as in the Greater Toronto Area (GTA), Vancouver and Edmonton.

“It started small when they came to Canada and they’ve continued to have more and more conviction in working with us and seeing the opportunities that the Canadian real estate landscape presents,” Canadian Urban chief financial officer Kurtis Ashton said in the same interview with Demsky.

“This one was just so unique and offered so many opportunities,” Ashton said of the Laurence acquisition. “The long-term durable income and value that will come from this is something that our investors are primarily focused on.

“We're not chasing quick returns, fads or trends. Long-term value creation and preservation is really key for groups like this.”

Canadian Urban and Mondev

Canadian Urban is comprised of multiple funds, including an open-ended fund primarily focused on industrial properties, as well as segregated accounts and individual investment strategies for family trusts and offices.

The company is looking at a couple of trophy multifamily assets now, including one in the GTA.

“They’re all new builds,” said Demsky. “We do not buy older, value-add multires.”

Montreal-based Mondev is an active developer of residential, commercial and mixed-use properties. It has contributed more than 8,000 homes and more than 100 commercial spaces to neighbourhoods around Montreal since the company was founded by David Owen in 1993.